Business Ethics - Friends of Angelo - Research Paper Example

Friends of Angelo Angelo Mozilo, who was the chief executive at Countrywide Financial, the biggest mortgage lenders in the United States, engaged various V.I.P personalities in trading favours for loans at abnormally favourable terms. This V.I.Ps included politicians, business partners and prominent government officials. These leaders had the power to facilitate the policies that Angelo deemed profitable for the firm. A key example of a leader that undermined the ethical expectations of his position was a California state appeals court judge called Richard Aldrich (Ferrell et al., 2013).In this case, the judge needed funds to finance an expansion project he was undertaking for his house at Sherwood Country Club in Westlake Village.

He got the loan from Countrywide Financial, but the terms raised eyebrows for any keen eye. The terms were too good as compared to that offered to other borrowers. This favour was extended to the judge so that the same favour may be shown to the company. This was because the firm was being charged in the appellate court by borrowers who felt dissatisfied by what the firm had paid as settlement fees. Aldrich was part of a three-man bench that sure enough rejected the appeal of the borrowers. The fact that the judge failed to mention his previous contact with the defendant company was unethical and against the codes of conduct of a judge.

As a judge, he ought not to have received any favours or loan in the terms he did knowing that the company had a case pending in his court (Ferrell et al., 2013).This was replicated with all the leaders Angelo deemed fit to orchestrate the company’s progress. These leaders are called and appointed the servants of the people to have the interest of the ordinary populace at heart, but instead they have misused their powers to pursue personal gain. Leaders in this case acted in corrupt manners by conducting underhand deals that would otherwise not be permissible.

They ignored and neglected their oaths of office by using the office powers not in service to their country or its people as intended by the law, but in service to themselves (Ferrell et al., 2013).The implications on society of such conduct are, for example, mistrust of those in power. For if a judge, a person who is given the power to condemn, cannot check himself to know when he is going wrong then how can he judge others? It is then the biblical case of the blind leading the blind into a ditch.

Greed has obviously blinded many leaders to such an extent that the boundary of what is ethical and unethical is not clear anymore. The society will obviously, as a consequence of this, be keener in following up how what is publicly theirs is being used. The society through various human rights initiatives will petition for severe penalties for leaders caught in such dirty games and that more should be investigated and stiffer penalties be instituted against them (Ferrell et al., 2013).The customers of such firms such as Countrywide Financial felt cheated and extorted off their hard-earned money.

It makes no sense at all to offer the rich favours while there are those who are genuinely suffering to raise the little that is being demanded of them by the mortgage firm. Why not level the playing field so that there is equity and if any favours ought to be given why not offer them to those deserving of such. Leaders ought to set a good example at least that much they owe those they lead (Ferrell et al., 2013).ReferencesFerrell, O.C., Fraedrich, J. & Ferrell, L. (2013) Business ethics & social responsibility.

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